Published on 12/28/2018 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $500,000 contingent income autocalls on indexes
By Wendy Van Sickle
Columbus, Ohio, Dec. 28 – Morgan Stanley Finance LLC priced $500,000 of contingent income autocallable securities due Dec. 27, 2028 linked to the worst performing of the Russell 2000 index, the S&P 500 index and the Dow Jones Industrial Average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.25% if each underlying index closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any determination date after one year.
The payout at maturity will be par unless any index finishes below its 60% threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Contingent income autocallable securities
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Underlying assets: | Russell 2000 index, S&P 500 index and Dow Jones Industrial Average
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Amount: | $500,000
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Maturity: | Dec. 27, 2028
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Coupon: | 8.25% annualized, payable quarterly if each index closes at or above coupon barrier on observation date for that quarter
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Price: | Par
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Payout at maturity: | If each index finishes at or above threshold level, par; otherwise, 1% loss for each 1% decline of worst performing index
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Call: | At par if each index closes at or above its initial level on any determination date after one year
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Initial levels: | 1,292.086 for Russell, 2,416.62 for S&P and 22,445.37 for Dow
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Coupon barriers: | 904.46 for Russell, 1,449.972for S&P and 15,711.759 for Dow, 70% of initial levels
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Threshold levels: | 775.252 for Russell, 1,691.634 for S&P and 13,467.222 for Dow, 60% of initial levels
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Pricing date: | Dec. 21
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Settlement date: | Dec. 27
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Underwriter: | Morgan Stanley & Co. LLC
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Fees: | 3.5%
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Cusip: | 61768DUA1
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